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NEWT vs PSEC
Which Stock Would AI Choose? NewtekOne (NEWT) vs. Prospect Capital (PSEC) Stock Comparison
Key Takeaways
- NewtekOne (NEWT) is a technology-enabled bank holding company serving small and medium-sized businesses, while Prospect Capital (PSEC) is a business development company (BDC) that lends to middle-market companies.
- NEWT trades near tangible book value with a low earnings multiple, while PSEC trades at a substantial discount to its net asset value (NAV), reflecting persistent market skepticism.
- NEWT is pivoting toward recurring net interest income from deposit-funded lending; PSEC is rotating its portfolio toward first-lien senior secured loans while cutting its dividend.
- PSEC carries a far higher dividend yield than NEWT, but that yield reflects elevated perceived risk rather than superior growth.
- Relative performance and market positioning diverge sharply: NEWT is a bank-conversion growth story, while PSEC is a high-yield credit vehicle in turnaround mode.
- For additional context, explore NEWT Major News and NEWT Today's Price Move, as well as PSEC Major News and PSEC Today's Price Move.
- To see how automated systems are positioning across both tickers, explore the curated Trending AI Robots.
Introduction
Investors comparing NEWT and PSEC are weighing two very different approaches to financing smaller American businesses. NewtekOne operates as a technology-focused bank holding company that gathers deposits and lends through SBA (Small Business Administration) programs and conventional bank products. Prospect Capital is a business development company, or BDC, that originates and holds middle-market debt investments and distributes most of its income to shareholders. This stock comparison is most relevant to income-oriented investors and traders assessing relative performance, dividend sustainability, credit risk, and the market positioning of a bank-conversion story against a high-yield credit vehicle.
NEWT Overview and Recent Performance
NEWT, or NewtekOne, Inc., is a bank holding company serving independent and small-to-medium business owners through banking, lending, payments, payroll, and insurance. In recent weeks, its stock has traded in a relatively narrow range while management executed a strategic shift toward a bank-centric model that emphasizes recurring net interest income over gain-on-sale loan income. The company has scaled deposits rapidly, grown tangible book value, and extended the maturity of certain notes to ease near-term refinancing pressure. At the same time, it withdrew prior near-term EPS (earnings per share) guidance to hold more loans on its balance sheet, a move that reduces near-term earnings visibility but aims to build a more stable, recurring income stream. Analysts maintain a largely constructive view, though the shares trade at a low multiple of earnings relative to traditional banks.
PSEC Overview and Recent Performance
PSEC, or Prospect Capital Corporation, is a BDC that primarily provides first-lien senior secured loans to middle-market companies, alongside a shrinking set of equity-linked and real estate investments. In recent months, the shares have traded well below book value, with the stock priced at a steep discount to NAV even as the company rotates toward higher-quality, first-lien assets. Prospect recently reduced its monthly common dividend as part of a broader effort to align distributions with net investment income, and it has been exiting structured notes and selected real estate holdings. Credit metrics remain generally stable, with non-accruals low relative to the portfolio, but heavy insider buying and a downgrade in its credit rating highlight the market's focus on portfolio concentration and dividend coverage.
Trending AI Robots
Tickeron's Trending AI Robots page showcases a curated selection of automated trading systems drawn from a library of hundreds of AI trading bots that collectively monitor thousands of tickers. Each bot operates with its own trading style, strategy, timeframe, performance history, and set of tickers, so only those best suited to current market conditions earn a place in this featured section. This makes the page a practical starting point for traders who want to observe how data-driven systems are responding to evolving conditions across names like NEWT and PSEC. Exploring the Trending AI Robots section can help you identify strategies aligned with your own timeframe and risk tolerance.
Head-to-Head Comparison
The clearest contrast is structural: NEWT is a regulated bank holding company that funds lending with insured deposits, while PSEC is a BDC that funds lending with a mix of debt and equity. This shapes their risk profiles. NEWT's deposit base and government-guaranteed SBA loans provide a degree of funding stability, whereas PSEC's business model depends on credit quality across a diversified but higher-yielding loan book. On valuation, NEWT trades near book value with a single-digit earnings multiple, while PSEC trades at a deep NAV discount that signals market concern about asset quality and dividend coverage. Growth drivers also differ: NEWT's catalyst is scaling deposits and recurring net interest income, while PSEC's is portfolio rotation into first-lien loans and dividend sustainability. Market sentiment favors NEWT's steadier, bank-like profile, while PSEC offers a substantially higher yield that compensates for meaningfully higher perceived risk.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely favor NEWT over PSEC in the current environment. NEWT exhibits a more consistent trend profile, trades near tangible book value, and has a clearer near-term catalyst in its shift toward recurring deposit-funded interest income. PSEC's extreme dividend yield and steep NAV discount point to higher volatility and less stable market positioning, even though its first-lien rotation and insider buying suggest potential for improvement. A probabilistic framework would therefore assign greater relative stability and more favorable risk-adjusted positioning to NEWT, while treating PSEC as a higher-yield, higher-uncertainty candidate.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is NEWT is a Hold and PSEC is a Hold.
NEWT in -6.11% downward trend, declining for three consecutive days on October 30, 2026
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where NEWT declined for three days, in 216 of 278 cases, the price declined further within the following month. The odds of a continued downward trend are 78%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 03, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on NEWT as a result. In 69 of 93 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 74%.
The Moving Average Convergence Divergence Histogram (MACD) for NEWT turned negative on November 03, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 42 similar instances when the indicator turned negative. In 29 of the 42 cases the stock turned lower in the days that followed. This puts the odds of success at 69%.
The 50-day moving average for NEWT moved below the 200-day moving average on September 30, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
NEWT broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for NEWT entered a downward trend on October 22, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where NEWT's RSI Oscillator exited the oversold zone, 28 of 36 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 78%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a +3.97% 3-day Advance, the price is estimated to grow further. Considering data from situations where NEWT advanced for three days, in 219 of 323 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 17 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.844) is normal, around the industry mean (1.286). P/E Ratio (4.785) is within average values for comparable stocks, (13.490). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.190). Dividend Yield (0.071) settles around the average of (0.035) among similar stocks. NEWT's P/S Ratio (1.216) is slightly lower than the industry average of (3.738).
The Tickeron SMR rating for this company is 36 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 53 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 62 (best 1 - 100 worst), indicating fairly steady price growth. NEWT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NEWT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 56, placing this stock worse than average.
PSEC's RSI Oscillator slumps oversold zone
The RSI Indicator for PSEC moved into overbought territory on November 05, 2026. Be on the watch for a price drop or consolidation in the future -- when this happens, think about selling the stock or exploring put options.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The Moving Average Convergence Divergence (MACD) for PSEC just turned positive on October 28, 2026. Looking at past instances where PSEC's MACD turned positive, the stock continued to rise in 26 of 46 cases over the following month. The odds of a continued upward trend are 57%.
Following a +6.93% 3-day Advance, the price is estimated to grow further. Considering data from situations where PSEC advanced for three days, in 121 of 267 cases, the price rose further within the following month. The odds of a continued upward trend are 45%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on PSEC as a result. In 72 of 100 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 72%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PSEC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 59%.
The Aroon Indicator for PSEC entered a downward trend on November 02, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 19 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 81 (best 1 - 100 worst), indicating slightly worse than average price growth. PSEC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 84 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 92 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.252) is normal, around the industry mean (2.444). P/E Ratio (23.083) is within average values for comparable stocks, (-2.250). Projected Growth (PEG Ratio) (1.548) is also within normal values, averaging (1.319). Dividend Yield (0.101) settles around the average of (0.272) among similar stocks. P/S Ratio (5.432) is also within normal values, averaging (15.694).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PSEC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock worse than average.
NEWT | PSEC | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 21 | 5 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 17 Undervalued | 92 Overvalued | |
PROFIT vs RISK RATING 1..100 | 100 | 100 | |
SMR RATING 1..100 | 36 | 19 | |
PRICE GROWTH RATING 1..100 | 62 | 81 | |
P/E GROWTH RATING 1..100 | 53 | 84 | |
SEASONALITY SCORE 1..100 | 75 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
NEWT's Valuation (17) in the null industry is significantly better than the same rating for PSEC (92). This means that NEWT’s stock grew significantly faster than PSEC’s over the last 12 months.
NEWT's Profit vs Risk Rating (100) in the null industry is in the same range as PSEC (100). This means that NEWT’s stock grew similarly to PSEC’s over the last 12 months.
PSEC's SMR Rating (19) in the null industry is in the same range as NEWT (36). This means that PSEC’s stock grew similarly to NEWT’s over the last 12 months.
NEWT's Price Growth Rating (62) in the null industry is in the same range as PSEC (81). This means that NEWT’s stock grew similarly to PSEC’s over the last 12 months.
NEWT's P/E Growth Rating (53) in the null industry is in the same range as PSEC (84). This means that NEWT’s stock grew similarly to PSEC’s over the last 12 months.
| NEWT | PSEC | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 78% | 1 day ago 75% |
| Stochastic ODDS (%) | 2 days ago 70% | 1 day ago 50% |
| Momentum ODDS (%) | 2 days ago 74% | 1 day ago 72% |
| MACD ODDS (%) | 2 days ago 69% | 1 day ago 57% |
| TrendWeek ODDS (%) | 2 days ago 74% | 1 day ago 59% |
| TrendMonth ODDS (%) | 2 days ago 76% | 1 day ago 52% |
| Advances ODDS (%) | 21 days ago 68% | 8 days ago 45% |
| Declines ODDS (%) | 7 days ago 78% | 1 day ago 59% |
| BollingerBands ODDS (%) | 2 days ago 76% | N/A |
| Aroon ODDS (%) | 2 days ago 75% | 1 day ago 38% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
NEWT’s FA Score shows that 1 FA rating(s) are green while PSEC’s FA Score has 1 green FA rating(s).
- NEWT’s FA Score: 1 green, 4 red.
- PSEC’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
NEWT’s TA Score shows that 3 TA indicator(s) are bullish while PSEC’s TA Score has 4 bullish TA indicator(s).
- NEWT’s TA Score: 3 bullish, 6 bearish.
- PSEC’s TA Score: 4 bullish, 3 bearish.
Price Growth
NEWT (@Regional Banks) experienced а -3.93% price change this week, while PSEC (@Investment Managers) price change was -14.51% for the same time period.
The average weekly price growth across all stocks in the @Regional Banks industry was -0.95%. For the same industry, the average monthly price growth was +0.49%, and the average quarterly price growth was +7.02%.
The average weekly price growth across all stocks in the @Investment Managers industry was -3.21%. For the same industry, the average monthly price growth was -6.42%, and the average quarterly price growth was -6.10%.
Reported Earning Dates
NEWT is expected to report earnings on Mar 02, 2027.
PSEC is expected to report earnings on Feb 10, 2027.
Industries' Descriptions
@Regional Banks (-0.95% weekly)Regional banks have a smaller reach than major banks, and cater mostly to one region of a country, such as a state or within a group of states. They offer services often similar – albeit with some limitations/smaller scale – compared to major banks. Taking deposits, making loans, mortgages, leases, credit cards , fund management, insurance and investment banking. SunTrust Banks, State Street Corp., M&T Bank Corp. are some examples of U.S. regional banks.
@Investment Managers (-3.21% weekly)Investment Managers manage financial assets and other investments of clients. Management includes designing a short- or long-term strategy for buying/holding and selling of portfolio holdings. It can also include tax services and other aspects of financial planning as well. While it is perceived that the industry is faced with growing competition from robo-advisors/digital platforms and passive/ index-tracking funds, many investors still find value in actively managed in-person services that investment management companies often emphasize on. At the same time, many wealth managers are also incorporating digital initiatives/low cost options in addition to their in-person customized services. Their main sources of revenues are fees as a percentage of assets under management, in addition to a certain portion of clients’ gains from asset appreciation. BlackRock, Inc., Blackstone Group Inc and Brookfield Asset Management are some of the major investment management companies.
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NEWT and
Correlation & Price change
A.I.dvisor indicates that over the last year, NEWT has been loosely correlated with LOB. These tickers have moved in lockstep 62% of the time. This A.I.-generated data suggests there is some statistical probability that if NEWT jumps, then LOB could also see price increases.
| Ticker / NAME | Correlation To NEWT | 1D Price Change % | ||
|---|---|---|---|---|
| NEWT | 100% | +3.38% | ||
| LOB - NEWT | 62% Loosely correlated | +2.12% | ||
| TCPC - NEWT | 61% Loosely correlated | +4.05% | ||
| AUB - NEWT | 61% Loosely correlated | +1.44% | ||
| NBHC - NEWT | 60% Loosely correlated | +1.92% | ||
| AMTB - NEWT | 60% Loosely correlated | +1.59% | ||
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